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Out-hustled by the Waterloo area for federal economic development dollars, some city politicians say London needs to do a better job seizing such opportunities and getting business on board.

A Free Press analysis shows the wider Waterloo area has made three applications for funding under a $1-billion federal recession-relief fund for every application hard-hit London-St. Thomas has turned in since 2011, with the result a growing gap in money allocated to the two regions.

The Federal Economic Development Agency for Southern Ontario, or FedDev Ontario, saw only 16 applications for project funding from the London-St. Thomas area in 2011 and through first-quarter 2012. That compares with 51 for the wider Waterloo area over the same period.

London-St. Thomas, its metro jobless rate one of Canada’s highest, has received about $37 million from the job-creation fund compared to $87.4 million for the Waterloo area, whose unemployment rate remains lower than London’s.

With the funding disparity partly the result of not enough local applications, the city wants to make sure businesses are aware of the fund and the money.

“I think we should be encouraging, supporting London business to make applications,” said Coun. Joni Baechler.

“There is an assumption the (London Economic Development Corp.) undertakes this, makes sure business is fully apprised.”

Coun. Bud Polhill, a member of the city’s economic prosperity committee, agreed. He said he will raise the issue at a future meeting, to suggest the committee put information about such programs before businesses.

The head of the LEDC insists the agency has got the word out to the business community, sending it through channels including social media and an information session that was held for manufacturers in March.

Still, if the city wants to help get the word out, LEDC chief executive Peter White said he welcomes the input.

“We would like to see (the total of applicants) higher. We can only push so hard to take advantage” of it, he said.

Iain Klugmann, chief executive of Communitech in Waterloo, that city’s technology agency, said he believes the Waterloo area has a culture of entrepreneurship few can match — and that’s why it has more applicants for federal money and more funding.

“As a community we have had a headstart on others — we have been doing this a long time, and we have in place a robust support network for business.”

He dismisses comparisons between any two areas as “false,” saying “the two communities are different” and “there are more innovation-based businesses here.”

Polhill said he wants prosperity committee members to have “a list” of all federal and provincial programs that can be tapped to fund business growth.

“We want to make people aware they can be part of this. We have to be proactive. If we react, then it is too late by then.”

Ontario is also launching a regional development fund, an $80-million, four-year effort for Southwestern Ontario, and Polhill said business has to be ready to tap it.

One reason why London lags in applications for federal funding is that Kitchener and Waterloo both qualify under an adjustment fund available only to cities with populations under 250,000, said White.

WHAT THEY SAID:

“We aggressively go out and promote FedDev to companies to make applications. There is a perception it is difficult, but we have found the first stage (of the application process) very straighforward. It is more friendly than businesses assume.”

— Peter White, chief executive, London Economic Development Corp.

“The examination of Kitchener-Waterloo, versus London versus Windsor is artificial. FedDev is about building a strong economy across Southern Ontario.”